Updated trading statement for the six months ended 30 June 2020 Merafe Resources Limited (Incorporated in the Republic of South Africa) (Registration number: 1987/003452/06) JSE share code: MRF ISIN: ZAE000060000 (“Merafe” or the “Company”) UPDATED TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020 Merafe shareholders (“Shareholders”) are referred to the trading statement for the six months ended 30 June 2020 (“Period”) and the update regarding the publication of the financial results for the Period published on SENS on 27 July 2020 and 7 August 2020, respectively. Basic earnings/(loss) and headline earnings/(loss) per share Shareholders are further advised that Merafe now expects to report the following, in respect of the Period: • a basic loss per share of between 37.6 cents and 39.0 cents, compared to a basic earnings per share of 6.6 cents for the prior comparative period; and • headline earnings per share of between 0.9 cents and 1.3 cents, compared to a headline earnings per share of 6.6 cents for the prior comparative period, which is a decrease of between 81% and 86%. The expected decrease in basic earnings and headline earnings per share is primarily driven by substantially lower chrome ore and ferrochrome prices and lower sales volumes which were partially offset by a weaker average Rand:US$ exchange rate. In addition to this, basic earnings includes an impairment charge which has led to further expected decrease in basic earnings per share. Expected cash and debt balances – Merafe Resources Limited Group 30 Jun 2020 31 Dec 2019 R’m R’m Cash and cash equivalents balance 265 354 Net cash/(debt) 263 354 Shareholders are advised that the financial information on which this announcement is based, has not been reviewed or reported on by Merafe’s external auditors. The financial results for the Period are expected to be published on SENS on or about 8 September 2020. Sandton 28 August 2020 Sponsor One Capital Date: 28-08-2020 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.